'Buy land before buying a car': Financial advisor shares Gujarati family money rules for building wealth

Building wealth is not always about earning a high salary or displaying expensive possessions. According to financial advisor Prem Soni, some Gujarati families approach money with a stronger focus on financial security, discipline and long-term wealth creation. Soni took to social media to share 10 Gujarati family money rules, arguing that children are not raised to “look rich” but to avoid becoming “financially helpless”. From buying assets before luxury goods to creating multiple income streams, his lessons focus on building wealth that lasts.

‘Buy land before buying a car’: Gujarati money rule focuses on assets

One of Soni’s most striking suggestions is to prioritise assets over status-driven purchases. He advises families to “buy land before buying a luxury car”, highlighting the difference between spending money on something that depreciates and putting money towards an asset that can potentially contribute to long-term wealth.

The broader message is about delaying lifestyle upgrades until financial foundations are stronger. A luxury purchase may offer immediate gratification, but building assets can provide greater financial security over time.

A salary is not permanent security

Soni also challenges the idea that a regular salary automatically means financial stability. One of his rules states that “a salary is safe only until the company says goodbye”. The advice reflects the uncertainty of modern employment. Even a well-paying job can disappear, making savings, investments and additional sources of income important parts of financial planning.

He similarly warns against relying on a single income source, describing it as “a financial emergency waiting to happen”. Building multiple income streams, according to this approach, can reduce dependence on one employer or business.

Don’t celebrate profits before the money arrives

Another rule focuses on the difference between expected income and actual cash flow. Soni advises people never to celebrate a profit until the payment has reached their account. A business may appear profitable on paper, but delayed payments, outstanding invoices and cash-flow problems can create financial stress. The lesson is simple: projected money and money actually received are not the same thing.

Reputation can matter as much as qualifications

Soni also points to the importance of trust in financial and business relationships. One of his rules says that “your reputation can borrow more money than your degree”. The idea is that credibility, reliability and a strong track record can become valuable forms of financial capital. Qualifications may open doors, but reputation can determine whether people are willing to trust someone with opportunities, partnerships or credit.

Why children should learn about money early

Soni argues that financial education should not be kept away from children. His advice is that “children should hear business discussions”, rather than being completely protected from conversations about money. The thinking is that early exposure can help children understand how businesses work, how money is earned and why financial decisions matter. Instead of treating money as an adult-only subject, families can gradually teach children about saving, spending, investing and responsibility.

Protect relationships with clear financial terms

Money can complicate even close relationships, which is why Soni advises against lending money simply to protect a relationship. His rule is to “write the terms to protect both”. Clear expectations around loans, repayments and responsibilities can help prevent misunderstandings and resentment later.

The principle is less about mistrust and more about making financial arrangements transparent, even when the people involved are close friends or family members.

Live below your means without lowering your ambitions

Another of Soni’s rules combines financial restraint with ambition: “Live below your means but never think below your potential.”

The message is to control lifestyle inflation while continuing to pursue bigger personal and professional goals. Spending less than you earn can create room for savings and investments without requiring people to limit their aspirations.

Build wealth actively, then use passive income to preserve it

Soni also makes a distinction between creating wealth and maintaining it. He recommends building wealth actively and using passive income primarily to preserve it. This reflects the idea that wealth creation may require work, entrepreneurship, investing and deliberate financial decisions. Once a strong financial base has been created, passive income can then play a greater role in maintaining financial independence.

The biggest family flex is financial security

For Soni, the ultimate measure of family wealth is not an expensive car, lavish lifestyle or outward display of success. His final rule argues that “the biggest family flex is not what you spend”. Instead, it is what the next generation never has to worry about. That shifts the focus from visible consumption to financial resilience. The goal is to build enough wealth, assets and security that children and future generations have greater freedom and fewer financial pressures.

Soni ended his post by asking readers which of the 10 rules their families follow and which one they believe is completely wrong.